Keysight Technologies exceeds expectations with strong guidance, stock price soars

LootboxPhobia · 2026-02-23T21:24:04+00:00

Keysight Technologies reported first-quarter results exceeding expectations, with adjusted earnings per share of $2.17 and revenue reaching $1.6 billion. The second-quarter guidance remains strong, with expected revenue of $1.69 to $1.71 billion. The company's stock price rose 16.8% after hours.

LootboxPhobia

2026-02-23 21:24:04

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Investing.com – Keysight Technologies, Inc. (NYSE: KEYS) reported first-quarter results that exceeded analyst expectations and issued a second-quarter outlook well above Wall Street estimates, causing its stock to rise 16.8% in after-hours trading on Monday.

The test and measurement equipment manufacturer announced that for the quarter ending January 31, 2025, adjusted earnings per share were $2.17, surpassing the consensus estimate of $2.00 by $0.17. Revenue reached $1.6 billion, exceeding the expected $1.54 billion and up 23% from $1 billion in the same period last year.

Keysight’s second-quarter guidance significantly exceeded expectations, with the company projecting revenue of $1.69 billion to $1.71 billion. The midpoint of $1.7 billion greatly surpasses the analyst consensus of $1.51 billion. The company expects adjusted earnings per share for the second quarter to be between $2.27 and $2.33, with a midpoint of $2.30, well above the consensus estimate of $1.91.

Keysight President and CEO Satish Dhanasekaran stated, “Keysight started this fiscal year strong, delivering outstanding results that exceeded our expectations. Our investments over the past three years have enabled us to capitalize on ongoing market growth and create value.”

The Communications Solutions Group reported revenue of $1.12 billion, up 27% year-over-year, with commercial communications growing 33% and aerospace, defense, and government business increasing 18%. The Electronic Industrial Solutions Group generated $476 million in revenue, up 15% year-over-year, with automotive, energy, general electronics, and semiconductor markets all achieving double-digit growth.

The company noted that its outlook does not include the potential impact of the Supreme Court’s decision on IEEPA tariffs announced on February 20, 2026. Operating cash flow for the quarter reached $441 million, with free cash flow totaling $407 million.

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